The most popular time of the year to buy or sell a home is during the spring and summer, but this doesn’t mean that buying in the off season is not an option. There are many advantages to buying a home during the late fall and early winter.
Here are some benefits to buying a home in the off season:
1- Lower home costs
In the slower months of real estate sales, homeowners are more likely to lower the price of their home in order to sell. Homeowners feel the pressure of less buyers in the market and are willing to list their homes at a lower price. The lower list prices can open up more opportunities within a price range for buyers.
2- Higher likelihood of negotiating a sales contract.
Since there is not as much activity in the market during the late fall and winter months you do have more room to negotiate with the sellers. Most likely you will not be presenting an offer against competition on a home. This allows you to present your first offer at a lower number and hopefully sway the sellers closer to your desired price point.
Additionally sellers may be willing to pay more in closing costs during the off season. Due to lack of activity and interest in their home during the off season they may agree to pay more in closing costs in order to sell their home.
3- Lower interest rates and fees
Lenders also see a downturn in mortgage loan applications during the off season. During these months that are more likely to waive origination fees, offer lower discount points, or even have lower rates on their mortgage products. These advantages can end up saving you thousands over the life of a loan.
If you are ready to purchase a home don’t let the weather or time of year deter you. It may take more diligent searching, but ultimately you may find the house you really want at a better deal. Consider these factors when deciding if buying a home in the off season is right for you.